TRANS AGROTECH LIMITED
AUDITORS REPORT TO THE MEMBERS
We have audited the attached Balance Sheet of M/s. TRANS AGROTECH LIMITED
as on 31st Dec. 98 and also the annexed Profit and Loss Account of the
Concern for the period ending on that date and report that :
1. We have obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purpose of our audit.
2. In our opinion proper books of accounts have been kept by the concern,
so far as appears from our examination of the books.
3. The Balance Sheet and Profit and Loss Account dealt with by this Report
are in agreement with the above books of accounts.
4. In our opinion and to the best of our information and according to the
explanation given to us, the accounts together with the notes thereon give
a true and fair view :
a. In the case of Balance Sheet of the State of affairs of the concern as
at 31st Dec 1998.
b. In the case of Profit and Loss Account of the profit for the period
ending 31st Dec, 1998.
5. As required by the manufacturing and other Companies (Auditor's Report
) order, 1988 issued by the Company Law Board in terms of Section 227 (4A)
of the Companies Act, 1956 and on the basis of such checks as we considered
necessary, we further report that:
i) The Company has maintained proper records to show full particulars
including quantitative details and the situation of the Fixed Assets
pending capitalisation. We are informed that the management has carried out
physical verification of the major items of the Fixed Assets at regular
interval during the period and no materials discrepancies were noticed as
compared to the book records.
ii) None of the fixed assets have been revalued during the relevant period.
iii) As per the information and explanations given to us, the stocks of
finished goods and raw materials have been physically verified by the
management during the relevant period. In our opinion, the frequency of
verification is reasonable.
iv) In our opinion, the procedures of physical verification of stocks
followed by the management are reasonable and adequate in relation to the
size of the Company and the nature of the business.
v) As informed to us, the discrepancies noticed on physical verification of
the stocks as compared to book records were not materials and the same have
been properly dealt with in the books of account.
vi) In our opinion, the valuation of stocks is fair and proper in
accordance with normally accepted accounting principles.
vii) The Company has not taken any loans from director, companies, firms
and others parties as listed in register maintained under Section 301 of
the Companies Act, 1956.
viii) The Company has not granted any loans to companies, firms or other
parties listed in the register maintained under Section 301 of the
Companies Act, or to companies under the same management as defined under
section 370 (1B) of the Companies Act, 1956.
ix) In respect of loans and advances in the nature of interest free loans
given to employees are repaying the loans amounts as stipulated.
x) In our opinion and according to the information and explanations given
to us, there are adequate internal control procedures commensurate with the
size of the Company and the nature of its business for the purchase of
stores, raw materials including components, plants and machinery and other
assets and for the sale of goods.
xi) In our opinion and according to the information and explanations given
to us, the transaction of purchases of services and sale of goods and
materials exceeding Rs. 50000/- made with the companies in which the
directors are interested are listed in the register maintained in sections
301 of the companies Act, 1956 have been made at prices which are
reasonable as compared to the prices of the similar items supplied by
others parties or as available with the Company.
xii) As explained to us, the Company has a regular procedure for the
determination of unserviceable or damaged stores, raw materials and
finished goods. Adequate provision have been made in the accounts for the
loss arising on the items so determined.
xiii) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public.
xiv) As explained to us, the Company's operation do not generate any
realised by products and the Company has not sold or disposed of any
xv) The Company has not conducted internal audit during the period pending
start of commercial production during the said period.
xiv) We are informed that the Central Government has not prescribed
maintenance of cost record under Section 209(1) (d) of the Companies Act,
1956 for any of the activities of the Company.
xvii) We are informed that the provisions of the Provident Fund and
Employees State Insurance Act, 1948 are not as yet applicable to the
xviii) In our opinion and on the basis of the information and explanations
given to us, there were no undisputed amounts payable in respects of
income-tax, wealth tax, sales tax, custom duty and excise duty outstanding
as at December 31, 1998 for a Period of more than six months from the date
they became payable.
xix) According to the information and explanations given to us, no personal
expenses of employees and directors, others than payable under contractual
obligations or in accordance with generally accepted business practice have
been charged to revenue account.
xx) The Company is not a sick industrial company within the meaning of
clause (o) of sub section (1) of section 3 of the sick Industrial Companies
(Special provisions ) Act, 1956.
FOR MOLEDINA MUKADAM & ASSOCIATES
PLACE : MUMBAI. M. M. MOLEDINA
DATE : 02-06-99 PARTNER.